Global Stocks climbed Thursday on its third consecutive day after US Federal Reserve Jerome Powell hinted at cutting interest rates later this month to help markets adjust with the on-going US-China trade wars.
The Dow Jones Industrial Average and the S&P 500 posted their third day of gains:
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On other parts of the globe, Asian stocks also posted gains while some dipped.
People’s Bank of China Governor Yi Gang says China has room to adjust policy if the trade war with the U.S. deepens. Meanwhile, Japanese and South Korean shares advanced following gains on Wall Street in the wake of reports suggesting that a delay could be considered for U.S. tariff hikes on Mexican goods. U.S.-Mexico talks are set to resume Friday.
However, analysts recommend threading carefully as markets are still highly vulnerable depending on the results of US talks between China and Mexico.
Jim Cramer, the Mad Money host, said “Look, I hope I’m mistaken. I would love a rate cut next month, but hope should not be part of the equation.”
“Given that [President Donald Trump] has endlessly pressured Jay Powell to cut, he needs some cover before he can take action — otherwise he’ll look like a puppet. And the only thing that gives the Fed cover is a slower economy. Good thing, because that’s what we’re getting. ”
Cramer is possibly predicting a recession amidst news on the Federal Reserve cutting interest rates.
These are some of the main moves in markets:
- Japan’s Topix index rose 0.4% at 2 p.m. in Tokyo.
- South Korea’s Kospi gained 0.1%.
- Australia’s S&P/ASX 200 added 0.7%.
- Futures on the S&P 500 advanced 0.1%. The S&P 500 on Thursday climbed 0.6%.
- Euro Stoxx 50 futures rose 0.4%.
- The yen changed at 108.48 per dollar.
- The offshore yuan slid 0.2% to 6.9383 per dollar.
- The euro bought $1.1267, little changed.
- The yield on 10-year Treasuries rose one basis point to 2.12%.
- Australia’s 10-year bond yield was little changed at 1.48%.
- Gold dipped 0.2% to $1,332.92 an ounce.
- West Texas Intermediate crude climbed 1.4% to $53.33 a barrel.